From a broad perspective, firms choose one of two generic strategies to position themselves in the marketplace. These are:
A) high quality and low cost
B) discount pricing and premium pricing
C) value and low cost
D) cost leadership and differentiation
E) cost premium and separation

Question

Quizplus · Accepted Answer

The two generic strategies firms can choose from are cost leadership and differentiation. Cost leadership involves offering products or services at a lower cost than competitors, while differentiation focuses on creating unique products or services that are perceived as being superior by customers. These strategies are mutually exclusive, as a firm cannot simultaneously be a low-cost provider and a differentiator. Therefore, the best choice is D – cost leadership and differentiation.

From a Broad Perspective, Firms Choose One of Two Generic